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Sparks

American Fuel Economy Just Hit a Record, Thanks to EVs and Hybrids

The EPA’s numbers show the biggest improvements in almost a decade, despite America’s thirst for ever-larger trucks and SUVs.

Electric cars.
Heatmap Illustration/Getty Images

The U.S. Environmental Protection Agency is out with its annual Automotive Trends Report for 2022 model-year vehicles, and the numbers are some of the best it’s seen. Average emissions are at a record low and fuel economy is at a record high — and according to preliminary 2023-model-year data, those trends will continue into the new year.

Overall, the EPA says average real-world CO2 emissions for new vehicles sold in 2022 dropped by 10 grams of carbon dioxide per mile for an average of 337 g/mile, the lowest the agency has recorded. On the other side, fuel economy averages are at 26 miles per gallon, an improvement of 0.6 MPG and another record high for new vehicles sold.

Of the five categories of vehicles tested, four are the most fuel efficient the agency has seen since its inception, with crossovers (what the EPA classifies as “car SUVs”) showing the biggest drop in emissions at 27 g/mile, followed by pickup trucks, sedans/wagons, minivans, and SUVs.

The not-so-good-news is the EPA also recorded its highest number of SUVs, pickups, and minivans/vans sold since 1975, accounting for a whopping 63% of new vehicles that rolled off dealer lots. And across the board, 2022 vehicles were also the heaviest and largest ever sold.

This is primarily due to two things: First, automaker safety is at an all-time high, swelling cars with better crumple zones, dozens of airbags, and scads of active safety systems. Second, Americans just like big vehicles with more power — what the EPA calls “market trends.” That likely won’t change with 2023’s numbers.

Thankfully, there will be more EVs and hybrids coming to market, which should help to offset some of the emissions. Electrics helped reduce average emissions by 22 g/mile in 2022 and increased overall fuel economy by 1.2%, and projections for the next report show an even bigger boost to 26.9 MPG in 2023.

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Sparks

An Insurance Startup Faces a Major Test in Los Angeles

Kettle offers parametric insurance and says that it can cover just about any home — as long as the owner can afford the premium.

Los Angeles fire destruction.
Heatmap Illustration/Getty Images

Los Angeles is on fire, and it’s possible that much of the city could burn to the ground. This would be a disaster for California’s already wobbly home insurance market and the residents who rely on it. Kettle Insurance, a fintech startup focused on wildfire insurance for Californians, thinks that it can offer a better solution.

The company, founded in 2020, has thousands of customers across California, and L.A. County is its largest market. These huge fires will, in some sense, “be a good test, not just for the industry, but for the Kettle model,” Brian Espie, the company’s chief underwriting officer, told me. What it’s offering is known as “parametric” insurance and reinsurance (essentially insurance for the insurers themselves.) While traditional insurance claims can take years to fully resolve — as some victims of the devastating 2018 Camp Fire know all too well — Kettle gives policyholders 60 days to submit a notice of loss, after which the company has 15 days to validate the claim and issue payment. There is no deductible.

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Sparks

What the L.A. Fires Are Doing to the City’s Air

The Santa Ana winds are carrying some of the smoke out to sea.

Los Angeles during wildfires.
Heatmap Illustration/Getty Images

Wildfires have been raging across Los Angeles County since Tuesday morning, but only in the past 24 hours or so has the city’s air quality begun to suffer.

That’s because of the classic path of the Santa Ana winds, Alistair Hayden, a public health professor at Cornell who studies how wildfire smoke affects human health, told me. “Yesterday, it looked like the plumes [from the Palisades fire] were all blowing out to sea, which I think makes sense with the Santa Ana wind patterns blowing to the southwest,” Hayden said.

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Sparks

The New Age of Wildfire Is Overwhelming America’s Clean Air

A pre-print study from smoke researcher Marshall Burke and others shows how fires are eating into air quality gains.

Fires and smokestacks.
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The Greater Los Angeles area is awash in smoke and ash as multiple fires burn in and around the city. It’s too soon to assess the overall pollution impacts from this rare January event, but we know the smoke is filled with tiny particles known as PM2.5, one of the most pernicious public health villains, associated with increased risk of respiratory and heart disease and premature death.

Last year, the Environmental Protection Agency tightened the National Ambient Air Quality Standard for PM2.5 for the first time since 2012. The South Coast Air Quality District, which contains Los Angeles, is known for having some of the worst air quality in the country. State officials have already deemed it to be out of compliance — and that’s without even counting pollution from major wildfires. But new research raises questions about whether complying with the new standard will even be possible in many places due to the increasing frequency and severity of wildfires.

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